World stocks slip after Trump-Kim summit, investors move on

World stocks slipped on Tuesday as investors had mixed reactions to the summit

The MSCI All-Country World index fell nearly 0.1 percent on Tuesday

The dollar slipped into negative territory in morning trade in Europe

WASHINGTON, U.S. - Touted as a breakthrough summit that was initially planned to lead to North Koreas denuclearization, the meeting between the U.S. President Donald Trump and the North Korean leader Kim Jong Un ended with what analysts called nothing particularly game-changing.

Trump and Kim Jong Un met in Singapore in the historic summit, and pledged to work toward complete denuclearization of the Korean peninsula.

In return, the U.S. has committed to providing security guarantees and Trump even announced plans to end the war games in South Korea - which Pyongyang views as a threat and has been demanding for a long time now.

As the summit wrapped up on Tuesday, world stocks slipped, and the dollar retreated from a three-week high.

U.S. stock futures meanwhile were flat after the summit failed to woo investors.

The dollar, which earlier reached a three-week high, slipped into negative territory in morning trade in Europe.

Subsequently, in Asian equity markets, trading was volatile with Japan's Nikkeiparing early gains to close 0.3 percent higher after earlier rising as much as 0.9 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan dabbled between positive and negative, and was last up 0.15 percent.

South Korean shareswere weaker.

Chinese shares were buoyant after starting in the red.

The blue-chip CSI 300 indexjumped about 1.3 percent.

Europe had a muted open, with the pan-European STOXX 600 index last up less than 0.1 percent.

Futures indicated a lower open on Wall Street.

RBC Capital Markets head of Asia FX strategy Sue Trinh said there was nothing particularly game-changing about the summit.

Pointing out that both sides stood far apart on what denuclearization means, Trinh said, To the U.S., it means North Korea must deliver complete, verifiable and irreversible denuclearization. To Kim, it means North Korea suspends nuclear and missile tests in exchange for major economic concessions and the U.S. stepping back as torchbearer for the Asian region.

Several analysts cast doubt on how effective the agreement signed by the two leaders, which offers very few specifics, would prove to be in the long run at getting North Korea to denuclearize.

Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts said in a statement, Markets are skeptical. This is more of a case of well believe it when we see it, rather than actually reacting.

However, Old Mutual Global Investors European fund manager Ian Ormiston, pointed out, Any de-escalation is good, because in the background you always have worries about these situations, adding that trade conversations over the weekend at the G7 summit were more concerning.

As the summit closed, the spread between Italian and German 10-year borrowing costs narrowed, adding a relief rally on reassuring comments from Italys new economy minister.